ZARBA & LAFFREY

The parties to this proceeding were ZARBA and LAFFREY. The dispute concerned the interpretation of a clause within a deed of settlement, specifically whether it conferred a right to claim damages for breach of contract. The matter came before Young J in the Supreme Court of New South Wales.

The central legal issue before the Court was whether the wording of clause 10 of the deed of settlement, which stipulated that "each party shall be entitled to seek all remedies available at law or in equity for any breach of this Deed," granted the parties a right to claim damages for breach of contract, or if it merely preserved existing rights.

Young J reasoned that the language of clause 10 was clear and unambiguous. His Honour held that the phrase "seek all remedies available at law or in equity" was a broad and inclusive statement that encompassed the right to claim damages. The Court applied the principle of contractual interpretation that where the language of a contract is plain, the court should give effect to that plain meaning. His Honour found that the clause did not restrict the parties to specific remedies but rather affirmed their entitlement to pursue any remedy available under the law for a breach of the deed.

The Court therefore found that ZARBA was entitled to pursue a claim for damages for breach of the deed of settlement.